BRANCH MANAGER LIC OF INDIA Vs. A LALITHA

JUDGEMENT

(1.) These two appeals arise out of the order passed by the lower Forum on 12.4.1999 in O. P. No.130/98 and O. P. No.135/98. The complainant's case in these two O. Ps. is that the complainant's husband Amaranathan had insured his life for two sums of Rs.1 lakh each under two policies, one commencing from 28.3.1993 and 28.10.1993. The first premium was paid on 28.3.1993 and 28.10.1993. Amaranathan developed severe headache and after consulting his family Doctor V. Gopal, he was taken to Madras and admitted at Apollo Hospital on 17.6.1994 where Dr. Kalyanaraman conducted an operation upon him. After the operation, he was improving and, therefore, came down to Thanjavur on 3.8.1994 and was attending to his normal work. But all of a sudden, he had a massive heart attack and expired on 9.8.1994. Therefore the complainant made a claim to the opposite parties for payment of the amounts due under the policies. The opposite parties rejected and repudiated the claim on the ground that the insured had suppressed that he was suffering from diabetes. Such a repudiation is bad in law. Hence these two complaints were filed.

(2.) The opposite parties contended that in the proposal form, the insured had stated that his health was good and that he was not suffering from any disease whereas he was suffering from diabetes for 10 years prior to his death, and thus has suppressed the material information at the time of taking the policies. since the death was within two years from the date of commencement of the policies, the opposite parties made an investigation. They obtained a certificate of treatment from Dr. Kalyanaraman. In the said certificate, it has been mentioned that the deceased was suffering from diabetes for about 10 years and, therefore, as there has been material suppression, the opposite parties were justified in repudiating the claim.

(3.) The lower Forum accepted both the complaints and directed the opposite parties to pay the insurance amounts of Rs.1 lakh with interest at 12% from the date of the complaints and a sum of Rs.2,000/- as compensation along with Rs.500/- as costs in both the cases. Hence the present appeals were filed by the opposite parties.